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September 10, 2025Gold demand dips over 25% this festive season as buyers cut back
Gold demand in India declined significantly during the initial phase of the festive season. The India Bullion & Jewellers Association (IBJA) reported a 28% drop compared to the previous year, marking the sharpest fall in 3 years. The rise in gold prices is being blamed for reduced consumer interest, with many buyers opting for lighter and lower-karat jewellery.
The average weight of lightweight jewellery has decreased from 7–12 grams to 7–10 grams. As per news reports, Surendra Mehta, national secretary of IBJA, stated, “High prices are denting demand. What is keeping the consumer away is the volatility in price. It is not stabilising.”
Despite falling jewellery demand, investment in gold remains stable, with customers choosing smaller coins or lighter pieces. Jewellers are adapting by offering more affordable options like 18K and 9K designs. Experts expect consumer sentiment to improve during Navratri and Diwali, supported by GST reforms and eased inflation pressures.
